RegulationAccounting StandardsPrince Charles outlines green reporting vision

Prince Charles outlines green reporting vision

Companies should report five major indicators of their environmental performance, a long-awaited report says

prince charles

Companies should report on five key environmental indicators, a report
sponsored by the Prince of Wales has said.

They should reveal their polluting emissions, energy use, water use, their
waste and their ‘significant use of other finite resources’.

The Prince’s report,
Accounting
for Sustainability
, was hailed by BT chairman and former KPMG chief Sir Mike
Rake as providing the simplest and most comprehensible environmental reporting
framework there was.

Between six and a dozen major companies – including Sainsbury’s, BT, Aviva,
EDF Energy and HSBC – are now set to implement the rules as part of their
reporting.

The five key indicators are the most practical consequence of the Prince’s
report, which includes other recommendations about sustainable reporting,
benchmarking and the up-stream and down-stream impact of companies.

Sir Mike Rake, who has been involved with the project, said the report was
much better than other attempts to hone environmental reporting. ‘Some of them
are very, very complicated. Sometimes less is more,’ he told Accountancy
Age
.

The Global Reporting Initiative, he said, was by contrast ‘extremely
expensive and detailed, and loses the ability to be comprehensible.’

The five key areas outlined would not be the end of the issue, he added –
where material companies would have to report other key environmental factors.

Though the take-up of the recommendations is likely to be voluntary, Lord
Sharman, also a former KPMG chairman, indicated that the companies act already
imposed a general burden on companies to report such information.

Sir Mike suggested ‘peer pressure’ would be as important as any formal
requirements too.

At a high-profile launch at St James’ Palace attended by a who’s who of the
senior members of the profession – including Paul Boyle, the chief executive of
the Financial Reporting Council, comptroller and auditor general Sir John Bourn
and other senior figures – Prince Charles said that accountants must fulfil a
central role ‘in providing the tools and information needed to tackle climate
change and the “sustainability revolution” that is hurtling down the tracks
towards us.’

The project has also set up a website to provide tools for companies in their
environmental reporting and in implementing its ideas. Available at
www.sustainabilityatwork.org.uk,
readers can also download the latest report from there.

Further reading:

Accounting
for Sustainability homepage

Related Articles

Demystifying GDPR for accountants

Accounting Standards Demystifying GDPR for accountants

1w Ellen Temperton, Lewis Silkin
EY fined £1.8m over Tech Data audit

Accounting Standards EY fined £1.8m over Tech Data audit

2m Emma Smith, Managing Editor
The great professional services shake-up

Accounting Standards The great professional services shake-up

3m Fergus Payne, Lewis Silkin
What do clients actually want from an accountant?

Accounting Standards What do clients actually want from an accountant?

4m Emma Smith, Managing Editor
Accountants shouldn’t neglect hybrid mismatch anti-avoidance rules

Accounting Standards Accountants shouldn’t neglect hybrid mismatch anti-avoidance rules

4m Alison Conley
Membership of the accountancy profession on the rise

Accounting Standards Membership of the accountancy profession on the rise

5m Alia Shoaib, Reporter
The real price of mates' rates in the provision of professional services

Accounting Standards The real price of mates' rates in the provision of professional services

5m DAC Beachcroft
IASB overhauls insurance accounting with issuance of IFRS 17

Accounting Standards IASB overhauls insurance accounting with issuance of IFRS 17

7m Alia Shoaib, Reporter